If Bitcoin falls much further, MicroStrategy could face margin calls on its loans — and the company's share price may suffer too.
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After a miserable Monday for Bitcoin, all eyes are on MicroStrategy and Michael Saylor, its bullish CEO.
The publicly traded company has been one of the most aggressive BTC investors on the planet.
But with the world's biggest cryptocurrency falling by 17% on Monday alone — and now trading at a 65% discount to all-time highs set back in November — Saylor's strategy of hodling for dear life could be put to the test.
Here are some key numbers which help illustrate MicroStrategy's predicament.
That's how much Bitcoin that MicroStrategy has accrued since the company started investing in August 2020.
The total amount of money that the business intelligence firm has spent building up its crypto warchest.
How much MicroStrategy's Bitcoin is now worth — an unrealized loss of more than $900 million in the space of a few weeks.
What this stash would have been worth when BTC hit all-time highs of $68,789 back in November 2021… with billions of dollars in paper profits disappearing over the past eight months.
MicroStrategy's share price as of 2pm EST on Monday afternoon — down 22.6% on the day as investors digested what was happening.
How much MSTR's stock has plunged over the past 12 months — indicating that the company's performance on Wall Street is heavily dictated by Bitcoin's direction of travel.
The impairment expenses associated with MicroStrategy's Bitcoin investment in the first quarter of 2022 — that's $50.8 million more than the company's total revenues over this period.
The average price that MicroStrategy has paid for each of its Bitcoin — meaning the company is currently nursing a $7,000 loss for each of the 129,218 BTC it owns.
The value of a Bitcoin-collateralized loan that was taken out with Silverbank Bank back in March.
If Bitcoin's price falls below this figure, MicroStrategy will face a margin call on this loan — and the company would need to add even more BTC as collateral.
